Prevailing business attitudes toward carbon pricing Internal carbon pricing — part of a broader move to decarbonization Emissions reduction by big business is growing more common. Three-quarters of survey respondents already benchmark their carbon emissions against industry averages. Beyond target setting and improved measurement, some companies are also investing in low-carbon assets and turning to renewable energy sources. Three-quarters of respondents also say their company is investing in low-carbon technologies, and 60% have made a renewable energy commitment of some kind (see Figure 4). This is more common among large companies (those of over US$10b in revenues). Nine in 10 of this group say they are investing in low-carbon technologies, and more than three-quarters (76%) say they have made a renewable energy commitment. This marks a shift from prevailing attitudes just a few years ago and echoes recent developments in the US. In October 2015, the White House announced that 68 companies had joined the original 13 signatories of the “American Business Act on Climate Pledge,” forming a group with an estimated market capitalization of US$5t.6 Each has made various commitments to reduce their Figure 4. Which actions has your company taken as part of its carbon emission reduction strategy? 75% Benchmarking against average industry emissions 75% Investing in low-carbon technologies 72% Developing corporate emissions reductions targets 60% Making a renewable energy commitment 27% Paying to offset any of your own emissions that are unavoidable, such as flights 15% Setting an internal carbon price 4% Other 3% None 6 ‘Global companies sign White House pledge on climate change action’, FT, October 19, 2015 http://www. 8 I Shifting the carbon pricing debate ft.com/cms/s/0/ed2c2682-763a-11e5-933d-efcdc3c11c89.html#axzz3pfAOieWd.